Tether's USDT, the largest stablecoin by market value, recorded net growth of $900 million over the past month — a 0.3% increase relative to its total supply. Over the same stretch, three major rivals — USDC, USDe, and PayPal's PYUSD — collectively lost $4.2 billion in market value, according to tracking data.
A modest gain for the leader
USDT's $900 million expansion is small compared to its overall size. The stablecoin's total supply sits at roughly $110 billion, meaning the net addition represents a fraction of a percent. Still, the growth stands out when set against the broader slide in competing tokens. Tether has maintained its dominance despite periodic regulatory scrutiny and questions about reserve transparency.
Steep losses for the pack
The combined market value of USDC, USDe, and PYUSD fell by $4.2 billion over the past month. USDC, issued by Circle and once seen as a top alternative to USDT, has been losing ground for months. USDe, a relatively newer entrant, and PYUSD, PayPal's stablecoin, also saw their market caps shrink. The exact breakdown of losses among the three isn't available in the data, but the aggregate decline is significant — more than four times USDT's net gain.
Diverging fortunes in the stablecoin market
The numbers highlight a growing gap between Tether and its competitors. While USDT ekes out small gains, the others are bleeding value. The trend could reflect shifting investor preference for the most liquid and widely accepted stablecoin, or it might point to specific headwinds facing each rival. The data doesn't explain why USDC, USDe, and PYUSD all lost at the same time.
What's clear is that the stablecoin market isn't growing evenly. USDT's gain of $900 million is dwarfed by the $4.2 billion exit from its competitors. The net effect is a shrinking overall market for these tokens, at least for the month.
The next month's figures will show whether USDT can keep its slow climb or whether the losses among its rivals deepen further. No official explanations have been offered by any of the issuers.
